HIGHLIGHTS

The CBI (Central Bureau of Investigation) on Sunday registered a case of yet another bank fraud, this time against one of India's largest sugar mills- Simbhaoli Sugars Ltd, amounting to Rs 200 crore.

The Uttar Pradesh-based private sugar company, its top officials, along with unknown bank officials have been booked by the agency for allegedly defaulting on loans taken from the Oriental Bank of Commerce (OBC).

As many as 10 people have been booked, including the chairman of Simbhaoli Sugar Mills Limited Gurmeet Singh Mann, Deputy Managing Director Gurpal Singh and CEO GSC Rao.

According to the CBI, the Hapur-based Simbhaoli Sugars Ltd in 2011 fraudulently diverted funds received as loans for sugarcane farmers and self help groups.

Officials said that the bank sanctioned a loan amounting to Rs 148.60 crore in 2011 to the private company for financing individuals, Joint Liability Groups and Self-Help Groups under the tie-up arrangement under the RBI Scheme to 5,762 sugarcane farmers supplying sugar produce to said private company during the period from January 25 to March 13, 2012.

But, allegedly, the funds were diverted for personal use.

The loan amount was then converted into a non-performing asset on March 31, 2015.

In addition, (now booked) some bank officials in connivance with top bosses also got a loan worth Rs 110 crore sanctioned to Simbhaoli Sugar Mills to help it settle its previous dues.

But, the corporate loan, too, turned into an NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the corporate loan of Rs 109.08 crore (as fresh outstanding).

The CBI has so far conducted searches at other branches of the firm and the residences of its bosses in Hapur, Noida and six locations in New Delhi.

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